Whether it's early days of a new condominium or thereafter, condominium corporations should be mindful of a number of important deadlines. We've listed our top eight deadlines for condominium corporations below:
1. First-year budget deficit
- Section 75 of the Condominium Act, 1998 (Ontario) provides that the developer is responsible for any shortfall in the first year budget.
- The Corporation must notify the developer, in writing, within thirty (30) days of receiving the audited financial statements of any first-year budget deficit.
- The developer is responsible to make the Corporation whole for any deficit, but they are not responsible for a deficit as a result of change to services.
- The developer must reimburse the Corporation within thirty (30) days of receiving the notice failing which, the Corporation may refer the matter to mediation/arbitration.
2. Performance audit
- Section 44 of the Condominium Act, 1998 (Ontario) provides that the Corporation (if the property contains one or more units for residential purposes or if the corporation is a common elements condominium corporation) must be conducted no earlier than six (6) months, and no later than ten (10) months, following registration of the declaration and description.
3. Common element deficiencies
- As the “owner” of common elements, the Corporation is required to make warranty claims to Tarion. In most cases, the board of directors will appoint a designate to manage this process on behalf of the Corporation.
- The warranty is provided by one (1), two (2) and seven (7) year coverage periods.
- To make a warranty claim under the one (1) year warranty, the Corporation must submit a claim by midnight of the first anniversary of the registration of the declaration and description.
- To make a warranty claim under the two (2) year warranty, the Corporation must submit a claim by midnight of the second anniversary of the registration of the declaration and description.
- Claims for the seven (7) year warranty can be submitted at any time after the end of the second year anniversary, but no later than the expiry of the seventh anniversary of the registration of the declaration and description.
4. Terminating service agreements
- Section 112 of the Condominium Act, 1998 (Ontario) provides that a Corporation may terminate agreements for the supply of goods, services and facilities and contracts with respect to the common elements by resolution of the Board within twelve (12) months of the turnover meeting by providing sixty (60) days' written notice.
- Prior to exercising this provision, please review if any termination penalties or fees are payable under such agreement and if so, seek further legal advice.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
